There are a variety of subjective ways to determine which blockchain is considered the best. Is it based on market capitalisation, value, or speed? Bitcoin (BTC) has the largest market cap, while Ethereum (ETH) has the busiest network. The title of fastest blockchain is disputed, however.
Solana (SOL) claims speeds of up to 3,700 transactions per second (tps), outpacing many competing protocols that often struggle to reach three digits. Solana founder Anatoly Yakovenko invented a blockchain timekeeping mechanism called Proof of History (PoH) in November 2017 to prove events occurred at a specific moment, automating the transaction sorting process and removing one of the biggest obstacles to sustainable blockchain scalability.
Avalanche (AVAX) claims to be even faster than Solana, with speeds of up to 4,500 tps. It was created in September 2020 by Ava Labs, a private company founded by former Cornell University associate professor Emin Gün Sirer, as well as Kevin Sekniqi and Maofan ‘Ted’ Yin, as a faster, cheaper alternative to competing blockchain protocols. Avalanche’s ecosystem is split into three blockchains with specific purposes: the Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain). This layered architecture divides the network’s computational load, expediting transaction processing and giving developers flexibility.
Winning the transaction-per-second battle is important because faster blockchains deliver more utility through decentralised applications (dapps), decentralised finance (DeFi), GameFi, and more. Neither protocol is consistently as fast as it claims to be in real-world conditions, and the need for speed may compromise other functionality. Still, their scalability opens up many potential avenues.
Below, we compare and contrast two of the fastest blockchain protocols in the cryptocurrency industry, highlighting their histories, consensus mechanisms, key price points, and more.
Key Differences Between SOL and AVAX
Solana Overview
Solana is a single-chain blockchain protocol that provides scalability without sacrificing security or decentralisation. Software engineer Anatoly Yakovenko published a November 2017 white paper that described what he termed Proof of History: a timekeeping method for distributed systems like blockchains, with timestamps that wouldn’t need to be broadcast throughout the network. This would greatly reduce how much data was involved per transaction.
In February 2018, Yakovenko partnered with two former colleagues at Qualcomm (Greg Fitzgerald and Stephen Akridge), plus three others, to launch Solana, a programmable blockchain that allows developers to add new functionality. Today, the network hosts multiple dapps, including non-fungible token (NFT) marketplaces, play-to-earn (P2E) video games, and an extensive collection of meme coins.
DeFi applications, like crowdsourced banking and cryptocurrency exchanges, are also supported. The nonprofit Solana Foundation manages Solana and coordinates updates, but anyone can create new dapps on the network.
Solana’s greatest weakness is that the network can be unstable, with one glitch taking the entire system down for hours. For example, Solana’s network experienced more than six hours of downtime in September 2022 after a consensus algorithm implementation bug prevented new blocks from being added to the blockchain.
However, Solana’s community rapidly works to identify problems, address them, and create a patch to prevent the issues from happening again. The issue with the bug mentioned above was found and addressed through a patch. Many of Solana’s security upgrades have similar origins, so these issues ultimately make the network stronger. But the frequency of them raises questions about the feasibility of large-scale adoption.
Avalanche is an open smart contract platform designed for fast, cheap transactions. Ava Labs launched Avalanche in September 2020 with a multichain architecture. The Exchange Chain (X-Chain) supports token creation, asset exchanges, and cross-chain transfers. However, it doesn’t support total ordering, meaning it’s agnostic to when transactions occurred.
The Platform Chain (P-Chain) facilitates staking and coordinates validators and Layer-1 subnets. The Contract Chain (C-Chain) is compatible with the Ethereum Virtual Machine (EVM) and enforces total ordering, making it suitable for executing smart contracts and DeFi applications. This architecture divides network tasks, improving efficiency and scalability.
Avalanche supports everything expected from a programmable blockchain network, including DeFi tools like Benqi (crypto lending and staking app) and P2E gaming like Legends at War. Avalanche has a more centralised governance structure than Solana since Ava Labs is a for-profit company, but it’s still open for any developer to work on. Ava Labs plays a significant role in the network’s development, which provides direction but raises questions about decentralisation.
Avalanche’s three blockchains can be updated independently, with most upgrades centred around expanding functionality. Developers can create Layer-1 subnets using a Proof of Stake (PoS) consensus mechanism to enhance security while enabling flexibility for application-specific needs. For instance, the P-Chain added support for ‘elastic subnets’ on 18 October 2022, which allow developers to scale their own ecosystems without impacting the main Avalanche network, creating a modular and adaptable infrastructure.
Solana combines the PoS and Proof of History consensus mechanisms. Under PoS, special nodes, called validators, are responsible for processing incoming SOL transactions and adding them to the blockchain. Validators gain influence as they stake more SOL to the network, and they can seek additional stake from SOL holders, called delegators, to increase their voting power. In exchange, delegators receive a proportional share of any earned staking rewards. Delegators have over 1,000 nodes to choose from, promoting decentralisation, though larger validators control a significant portion of the stake.
PoH uses Verifiable Delay Functions (VDFs) to allow validators to generate accurate timestamps locally through SHA-256 computations. Timestamps don’t have to be broadcast with transactions, so validators don’t have to process as much data to confirm them. As a result, transactions are faster and use fewer resources, increasing scalability. Putting this work on validators, however, increases complexity and the risk of network outages in times of high demand.
Avalanche’s consensus mechanism is based on its ‘Snow Protocols’, where validators send transactions to a random subset of other validators, which repeat the process with additional subsets until the network reaches consensus. This process finalises a transaction without requiring global network communication, increasing efficiency. Validators still have more voting power as they stake more AVAX, and delegators can participate by staking tokens to one or more validators in exchange for staking rewards.
Avalanche also reviews node reliability via Proof of Uptime, which tracks uptime for a node and judges how consistently it remains online, and Proof of Correctness, which refers to whether a node has followed protocol rules before. Trustworthy nodes have more influence than those with a mixed track record.
Solana and Avalanche’s Scalability
Solana’s claims as the fastest blockchain are justifiable even if the specific numbers don’t match. Under real-world conditions, Solana processes roughly 1,333 tps (at the time of writing), with a maximum of 7,229 and a theoretical maximum of 65,000. These speeds, combined with very low processing fees averaging US$0.00064, plus net-zero carbon impact, make Solana one of the most scalable blockchains.
Understanding Avalanche’s scalability is more nuanced, as it is not as active as Solana and has three blockchains with different speeds. The claim of 4,500 tps applies to the X-Chain, which saves time by ignoring when transactions occurred. The C-Chain is capable of hundreds of tps. Avalanche averages 18 tps under real-world conditions (at the time of writing), but this is more of a function that the network is not fully utilised. Consider that time to finality for Avalanche is 1.3 to 3.4 seconds, compared to 2.34 to 46 seconds for Solana.
Avalanche’s average transaction fee of $0.08 is higher than Solana but lower than most other cryptocurrencies and large payment processors. Avalanche uses about 0.0005% of the energy demanded by Bitcoin’s Proof of Work (PoW) consensus mechanism, making it a greener option.
Tokenomics Comparison
Solana Use Cases
SOL is the Solana network’s native token for gas fees, staking, purchasing altcoins, and accessing dapps, as well as a secure store of digital value that can be exchanged for fiat currencies and other cryptocurrencies. Crypto.com is a trustworthy platform where SOL holders can swap tokens. Financial products like Solana exchange-traded funds (ETFs) have also been proposed, but haven’t received regulatory approval in the United States as of this writing.
Avalanche Use Cases
AVAX is the native cryptocurrency of the Avalanche ecosystem, used for staking, transaction fees, buying altcoins, and accessing dapps. AVAX is also a secure digital value store, but its lower liquidity may lead to a higher spread when exchanging for fiat.
Key Pricing Moments
Cryptocurrencies are a volatile asset class prone to large price fluctuations based on world news, influencer activity, technology upgrades, and the market’s invisible hand. SOL and AVAX have both experienced ups and downs. Below is a brief price timeline for each token.
Solana — Key Price Events
March 2020
SOL is released through an initial coin offering (ICO) at $0.04 per token.
Sept. 2021
SOL’s value drops 5% after a network outage lasting about 17 hours compromises faith in Solana’s ecosystem under stressful conditions. The downturn proves short-lived, as SOL reaches a new all-time high (ATH) of $258.72 on 7 November 2021 due to strong interest in DeFi and NFTs.
Nov. 2022
SOL’s value falls 40% after cryptocurrency exchange FTX files for bankruptcy. FTX Founder Sam Bankman-Fried had been a vocal Solana advocate with extensive SOL holdings, so FTX’s collapse affected Solana more than most other tokens.
June 2023
SOL’s price declines 30% after the United States Securities and Exchange Commission (SEC) alleges it qualifies as a security. The Solana Foundation denies the claim, with no resolution as of this writing.
Nov. 2024
SOL reaches a new ATH of $263.52 in the crypto bull market following Donald Trump’s victory in the 2024 United States presidential election.
Jan. 2025
Leading into Trump’s inauguration, SOL achieves another ATH at $296.19 before spending the next few months declining back into the $140 range.
Avalanche — Key Price Events
Sept. 2020
Ava Labs mints 360 million AVAX, selling at an average price of $5.30.
Aug. 2021
AVAX reaches $76 after Ava Labs announces a $180 million DeFi incentive programme named Avalanche Rush.
Nov. 2021
AVAX reaches a new ATH of $128 after Ava Labs announces a partnership with Deloitte to improve disaster relief funding in the United States.
Aug. 2022
Crypto Leaks accuses Ava Labs of conspiring with a law firm named Roche Freedmen to discredit competitors through frivolous class-action lawsuits. Ava Labs denies wrongdoing, but the news causes AVAX’s price to decline from $23.74 on 31 July to $15.16 by 20 October.
Dec. 2024
AVAX’s value surges 5% in 24 hours after Ava Labs CEO Emin Gün Sirer confirms he communicates with US President Donald Trump following Trump’s election victory. Over the next few months, the price would decline back to the $17 to $20 range.
Developments and Roadmaps: SOL and AVAX
Solana’s Roadmap
Solana’s roadmap is highlighted by Firedancer, a high-performance validator client designed to significantly increase Solana’s transaction processing capabilities and facilitate sharding. Jump Crypto is developing Firedancer and plans for a full release on Solana’s mainnet in 2025. Solana Labs is also working on incremental upgrades, including support for additional programming languages and a concurrent transaction processor named Runtime v2.
Avalanche’s Roadmap
Avalanche9000, the largest network upgrade since Avalanche’s launch, went live on 16 December 2024. This upgrade included Retro9000, a retroactive developer grant programme offering up to $40 million in funding to support innovation. It also included the ACP-77 proposal, introducing a new validator type that allows users to create their own subnets, and the ACP-125 proposal, which reduces the base fee on the C-Chain. A 2025 roadmap update from the team envisions further network upgrades, reduction of C-Chain gas fees, a developer website, a grants programme, and more.
Conclusion
Solana has the edge in real-world transactions per second, engagement, and overall ecosystem as of this writing, but Avalanche9000 could be a game-changer that makes Avalanche appealing.
Crypto traders may prefer either platform, as Solana’s high-performance ecosystem and current demand offer price upside potential, while Avalanche is more accessible. Developers may prefer Solana for its larger user base or Avalanche for the financial incentives it offers. Merchants may prefer Solana since they don’t have to worry about navigating a multichain blockchain protocol.
Always research a token’s price history, tokenomics, development team, risk profile, and roadmap before considering a purchase.
Due Diligence and Do Your Own Research
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Solana vs Avalanche: Exploring Two Leaders in High-Speed Blockchain Technology
Explore the ultra-fast single-chain design of Solana and Avalanche’s modular, multichain architecture built for flexibility and efficiency.
Key Takeaways
Solana (SOL) is a high-performance blockchain leveraging Proof of History (PoH) and Proof of Stake (PoS) to maximise speed and efficiency.
Avalanche (AVAX) is a multichain blockchain leveraging its Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain) based on use cases for better scalability.
Solana’s low transaction fees and robust decentralised app (dapp) ecosystem make it a strong contender for decentralised finance (DeFi), non-fungible tokens (NFTs), and gaming.
Avalanche’s Snow protocol consensus mechanism ensures fast finality and efficiency while supporting customisable subnets.
Solana’s frequent network outages throughout its history lead to quick innovations but raise concerns about long-term stability and adoption.
Avalanche is more centralised than Solana, but upgrades like Avalanche9000 enhance flexibility and developer incentives.
Solana offers high transaction speed and affordability, while Avalanche provides modular scalability and adaptability. Both platforms cater to developers, traders, and enterprises looking for high-performance blockchain solutions.
